EASTERN SHENGHONG(SZ:000301) Changjiang Securities·2025-11-08 07:26Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company reported a revenue of 92.162 billion yuan for the first three quarters of 2025, a year-on-year decrease of 14.90%. However, the net profit attributable to the parent company was 126 million yuan, an increase of 108.91% year-on-year. The net profit excluding non-recurring items was -71 million yuan, indicating a reduction in losses [2][6]. - In Q3 2025, the company achieved a revenue of 31.245 billion yuan, down 11.91% year-on-year but up 2.08% quarter-on-quarter. The net profit attributable to the parent company was -260 million yuan, indicating a loss compared to the previous quarter, while the net profit excluding non-recurring items was -343 million yuan, showing an increase in losses quarter-on-quarter [2][6]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported total revenue of 92.162 billion yuan, a decline of 14.90% year-on-year. The net profit attributable to the parent company was 126 million yuan, up 108.91% year-on-year, while the net profit excluding non-recurring items was -71 million yuan, indicating a reduction in losses [2][6]. - In Q3 2025, the company recorded revenue of 31.245 billion yuan, a decrease of 11.91% year-on-year but an increase of 2.08% from the previous quarter. The net profit attributable to the parent company was -260 million yuan, reflecting a loss, and the net profit excluding non-recurring items was -343 million yuan, indicating a worsening of losses quarter-on-quarter [2][6]. Industry Outlook - The refining and petrochemical industry is expected to improve due to the implementation of anti-involution policies, which may accelerate supply clearance in the refining and olefin sectors. The aromatic chain is anticipated to maintain a favorable outlook due to limited PX supply growth and steady downstream demand [13]. - The company possesses significant refining project advantages, with a total refining capacity of 16 million tons per year and various production capacities for petrochemical products, positioning it as a leading integrated refining company in China [13]. Future Projections - The company is projected to achieve net profits attributable to the parent company of 230 million yuan, 990 million yuan, and 1.6 billion yuan for the years 2025 to 2027, respectively. The corresponding price-to-earnings ratios based on the closing price on November 5, 2025, are expected to be 262.0X, 61.0X, and 37.8X [13].